Moody's ratings agency has assessed that SOCAR, Azerbaijan's state oil and gas company, faces lower carbon transition risk as natural gas makes up a growing share of its output. The shift from oil to gas reduces the company's exposure to stricter emissions regulations and carbon pricing mechanisms that target higher-emitting fuels. The analysis highlights how national oil companies in gas-rich regions may benefit from the global energy transition if they pivot toward gas production. However, the long-term outlook depends on whether gas is treated as a bridge fuel or a stranded asset in future climate policy scenarios.
